The Cabinet Committee on Economic Affairs (CCEA) is likely to allow highway builders to fully exit the project or partially divest equity in the road project after approval from the stakeholders. After the CCEA’s authorization, the project would be constructed by the company which specializes in road building and can then be taken over by the one whose expertise is operation and maintenance.
The exit however, can only be allowed if there is another willing company to take up the project. Further, it may also allow exit of consortium member or sole bidder from contract who cannot be salvaged and also facilitate divestment of equity three-month post commercial operation date (CoD). Though, this can be done after getting approval from NHAI and consortium of lenders.
In other development in the road sector, CCEA is also expected to approve the four-laning of the Dimapur-Kohima highway in Nagaland estimated at Rs 2,000 crore. The project was delayed due to setback in land acquisition process in the state. Meanwhile, major highways projects in the country have been blocked for long due to various reasons including delays in environment clearances and financial challenges.
However, the government is doing all efforts to boost progress of construction of national highways in the country. Further, the Reserve Bank of India has given dispensation to treat the loan to the toll projects as secured loan.
